Taiwan-based liquidity provider WOO Network reaches settlement with creditors
On Oct. 6, WOO Network announced that it has reached a settlement with Teneo, the creditors of Three Arrows Capital (3AC). This settlement involves repurchasing the shares and tokens acquired by 3AC in WOO’s Series A funding round in November 2021.
Taking a balanced view
At the time, 3AC was WOO’s largest investor, purchasing equity and 25 million WOO tokens. The remaining tokens were set to vest over the next year. WOO has now repurchased these shares and tokens at a discounted price, severing its ties with 3AC and its creditors. The company plans to cancel 3AC’s shares and distribute the additional 20 million tokens to other shareholders. The repurchased tokens will be sent to a burn address inaccessible to anyone.
The current trading price of the WOO token is $0.17, down almost 50% since April but up 12.71% for the year. The repurchased 20 million WOO tokens are valued at approximately $3.4 million.
The first of many
In 2022, 3AC became the first major cryptocurrency firm to face insolvency due to declines in Luna and TerraUSD, coinciding with the collapse of FTX. The company initiated bankruptcy proceedings in the British Virgin Islands and appointed liquidators to manage its operations’ winding down and debt settlement.
Hot Take: WOO Network settles with creditors, cutting ties with Three Arrows Capital
WOO Network has successfully resolved its issues with Three Arrows Capital’s creditors through a settlement agreement. By repurchasing the shares and tokens acquired by 3AC, WOO has severed its connections with the troubled firm. The repurchased tokens will be distributed to other shareholders, and the additional 20 million tokens will be burned. This settlement marks a positive step forward for WOO Network, enabling it to move past its association with 3AC and its financial troubles. With the WOO token’s current trading price and the value of the repurchased tokens, this resolution provides stability and potential growth opportunities for WOO Network.
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